Karachi, October 16, 2023 – The Karachi Chamber of Commerce and Industry (KCCI) is urging the government to implement a significant reduction in electricity tariffs similar to the steps taken in reducing petroleum prices.
The chamber commended the government’s substantial cut in petroleum prices, which it believes will provide relief to both the general public and the business community in the face of rising inflation.
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Chairman of the Businessmen Group (BMG), Zubair Motiwala, and President of KCCI, Iftikhar Ahmed Sheikh, praised the Caretaker Prime Minister Anwarul Haq Kakar’s decision to reduce petroleum prices by Rs40 per liter. They acknowledged that this move was made possible by the decline in the international market for oil and the strengthening of the Pakistani Rupee against the US dollar. This decision is expected to have a positive impact on the economy and help alleviate some of the inflationary pressures.
In a joint statement, Chairman BMG and President KCCI expressed their hope that the Caretaker Prime Minister would take steps to reduce power tariffs and develop effective strategies to address ongoing gas shortages and low gas pressure experienced by industries in Karachi. They emphasized that the gas supply situation is deteriorating rapidly and is adversely affecting industrial production and export targets. They called for immediate action to ensure the smooth operation of industries, particularly during the upcoming winter season.
Zubair Motiwala raised concerns about the drop in Karachi Electric’s (KE) sales to industries, which have decreased by 9.5% over the last three months as electricity tariffs have risen. He emphasized the importance of addressing issues like theft, pilferage, technical line losses, and reviewing agreements with Independent Power Producers (IPPs) before resorting to increasing energy rates.
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President KCCI, Iftikhar Ahmed Sheikh, also called for a reduction in tariffs for inter-city transportation, which tend to be increased when petroleum prices rise but are only slightly reduced when prices fall. He suggested creating a formula that links transporter tariffs to prevailing petroleum product prices, allowing the benefits of reduced oil prices to reach both consumers and industries.
KCCI’s call for a reduction in electricity tariffs reflects the ongoing concerns of businesses and industries in Pakistan, who are struggling with rising energy costs and the need for cost-effective solutions to support economic growth and development.
